The Government of Pakistan raised a combined Rs108.3 billion in face value through its latest Government of Pakistan Hybrid Sukuk (GHS) auction conducted through the Pakistan Stock Exchange (PSX) Auction System. The amount raised remained below the aggregate pre auction target of Rs175 billion set for the two components of the transaction. The auction included fresh issues of Fixed Rate Discounted Government of Pakistan Hybrid Sukuk for 3 month, 6 month and 1 year tenors, along with the third re opening of a 10 year Variable Rental Rate Government of Pakistan Hybrid Sukuk originally issued on July 23, 2026.
Under the Fixed Rate Discounted Government of Pakistan Hybrid Sukuk category, tenders were invited for 3 month, 6 month and 1 year instruments against a pre auction target of Rs75 billion. The auction generated total face value bids of Rs177.494 billion across the three tenors, showing substantial demand compared with the targeted amount. The government accepted Rs60.435 billion in total through competitive and non competitive bids under the discounted Sukuk category. Competitive bids accounted for Rs57.317 billion of the accepted amount, while another Rs3.119 billion was accepted through non competitive bids.
The 1 year Fixed Rate Discounted Hybrid Sukuk recorded the largest competitive acceptance at Rs32.095 billion, with a cut off yield of 11.9890% and a cut off price of 89.3207. The 3 month tenor followed with Rs20.032 billion accepted through competitive bids at a cut off yield of 11.5401% and a cut off price of 97.4129. Meanwhile, the government accepted Rs5.191 billion through competitive bids for the 6 month tenor at a cut off yield of 11.7400% and a cut off price of 94.4698. The combined competitive acceptance across the three maturities stood at Rs57.317 billion.
An additional Rs3.119 billion was accepted through non competitive bids under the Fixed Rate Discounted GHS category. The 3 month tenor received Rs1.431 billion, followed by Rs0.984 billion for the 1 year tenor and Rs0.704 billion for the 6 month tenor. The weighted average yields on these non competitive bids were 11.4880% for the 3 month instrument, 11.7059% for the 6 month instrument and 11.9587% for the 1 year instrument. After combining competitive and non competitive bids, total acceptance reached Rs21.463 billion for the 3 month tenor, Rs5.894 billion for the 6 month tenor and Rs33.078 billion for the 1 year tenor.
The second component of the auction involved the third re opening of the 10 year Variable Rental Rate Government of Pakistan Hybrid Sukuk. The instrument was originally issued on July 23, 2026, and its reference or coupon rate for the first period was set at 11.3904%. The long term floating rate instrument attracted significant participation, with total face value bids reaching Rs499.050 billion. These bids were received within a price range of 97.1652 to 98.7552, indicating strong demand for the 10 year government security despite the amount ultimately accepted being considerably lower than total bids received.
The government accepted Rs47.873 billion in face value through the 10 year Variable Rental Rate Hybrid Sukuk re opening. Competitive bids accounted for Rs47.750 billion of the accepted amount and were accepted at a cut off price of 98.4171, corresponding to a cut off yield of 11.6594%. A further Rs0.123 billion was accepted through non competitive bids at a weighted average price of 98.5438 and a weighted average yield of 11.6373%. The acceptance represented only a portion of the Rs499.050 billion in total bids received for the long term floating rate instrument.
When the two components are combined, the government raised Rs108.308 billion through the latest Hybrid Sukuk auction. The Fixed Rate Discounted GHS component contributed Rs60.435 billion, while the 10 year Variable Rental Rate GHS re opening contributed Rs47.873 billion. The combined amount was therefore below the overall pre auction target of Rs175 billion, which comprised Rs75 billion for the fresh discounted Sukuk issues and Rs100 billion for the 10 year Variable Rental Rate Sukuk re opening.
The latest auction also highlights continued participation in Pakistan’s Sukuk market across both shorter maturity fixed rate instruments and longer term variable rental rate securities. The Fixed Rate Discounted Sukuk received Rs177.494 billion in bids against a Rs75 billion target, while the 10 year Variable Rental Rate Sukuk attracted Rs499.050 billion in bids against its Rs100 billion pre auction target. Despite the significant demand recorded across both components, the government accepted a combined Rs108.3 billion, adding to its financing through Shariah compliant government securities while maintaining separate instruments for different maturity and investment requirements.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.